On Thursday, Benchmark analyst Matthew Harrigan adjusted the price target for Comcast Corp (NASDAQ:CMCSA) to $55.00, down from the previous $57.00, while maintaining a Buy rating on the stock. The revision follows a drop in Comcast shares by 11% on Wednesday, attributed mainly to the company's broadband growth results, which slightly missed consensus expectations. According to InvestingPro data, the stock's recent decline has pushed it near its 52-week low of $32.50, with technical indicators suggesting oversold conditions. The company, currently valued at $130 billion, appears undervalued based on InvestingPro's Fair Value analysis. Additionally, comments by President Michael Cavanaugh hinted at a potential shift in Xfinity's pricing strategy to support a new bundled approach that emphasizes mobile connectivity.
Comcast's first-quarter performance was also influenced by the anticipated opening costs of approximately $150 million for the Universal Epic Universe attraction in Florida. The company faces tough comparisons due to the success of last year's "Kung Fu Panda" release, which may impact attendance timing at the parks. However, Harrigan anticipates that Comcast's Parks and Studio segments will gain momentum throughout the year, driven by blockbuster releases such as "Jurassic Park: Rebirth," "Wicked: For Good," "How to Train Your Dragon," and "M3GAN 2.0."
The advertising market continues to present challenges across the majority of categories, with difficult political comparisons affecting the Connectivity & Platforms as well as Media segments. Earlier in the week, Benchmark expressed concerns over the short-term price movement in a fourth-quarter preview but now views Comcast stock as even more undervalued after the market's overreaction.
Despite the near-term concerns, Benchmark's revised forecast for 2025 reflects a broadband customer loss of approximately 550,000, adjusted from an earlier estimate of 250,000, with ongoing annual losses of around 100,000. This forecast takes into account the potential for increased volume from the new bundled strategy. Harrigan concluded that the updated projections necessitate only a minor adjustment to Comcast's price target, acknowledging the presence of new risks in the broadband segment. InvestingPro subscribers can access 13 additional investment tips and a comprehensive Pro Research Report that provides deep insights into Comcast's financial health, which currently rates as "GOOD" based on multiple factors including profitability and cash flow metrics.
In other recent news, Comcast Corporation has been the focus of several analyst revisions following its fourth-quarter earnings report. Loop Capital adjusted its price target from $53.00 to $50.00, maintaining a Buy rating, due to a shortfall in the number of broadband and wireless subscribers, as well as a slight miss on Peacock subscribers. Despite this, Comcast surpassed revenue expectations, primarily driven by its studio and theme parks. Goldman Sachs (NYSE:GS) also revised the company's price target from $50.00 to $44.00, maintaining a Buy recommendation, following a shortfall in domestic broadband growth.
In response to these developments, Comcast has announced an increase in its annual dividend and the authorization of a $15 billion share repurchase program. The company also introduced a new video bundle, Sports & News TV, for Xfinity Internet customers. Analysts from Benchmark and Seaport Global Securities maintained a Buy rating on Comcast stock, while a leadership change took place at MSNBC with Rebecca Kutler stepping into the interim role.
These are the recent developments at Comcast Corporation. Please note that the information provided is based on analyst projections and company announcements, and it does not constitute financial advice.
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